SlideShare une entreprise Scribd logo
1  sur  11
Télécharger pour lire hors ligne
IOT SUCCESS
STRATEGIES FOR
COMMUNICATIONS
SERVICE PROVIDERS
OPENOPTIMISTIC
UNSTOPPABLE
Copyright © 2017 Accenture All rights reserved.
THE INTERNET OF THINGS IS HERE –
AND EXCITEMENT IS RISING
Communications Service Providers are forecasting tremendous benefits
from the internet of things (IoT), both for their revenue expectations and for
society as a whole.
The excitement is justified: as providers of key connectivity – between
sensors, devices, data centers and people – CSPs will be integral to the
proliferation of the “internet of everything”.
A NEW REPORT FROM
THE WORLD ECONOMIC FORUM AND ACCENTURE SAYS:
The IoT is forecast to add
$14
trillion
of economic value to the
global economy by 2030.
Increasing bandwidth and data usage
could generate an additional
$65 billion
in operating profits for telecommunications
companies.
2
Copyright © 2017 Accenture All rights reserved. 3
SO - WHAT’S THE DRAWBACK?
For Communications Service Providers, commercial success from the IoT is by no means assured. Much of this potential new connectivity
revenue will have low profitability and low Average Revenue per User (ARPU). Unless CSPs make fundamental changes to service offerings and
business models, other companies will be reaping the benefits.
Offer solutions and
services to customers
rather than just products
and connectivity.
Create the right
operational focus and
partner choices
Implement more
sophisticated customer
support strategies
Excel in product and
service design, brought to
market at speed
Reshape business models
and sales team profiles.
BOTTOM LINE RESULTS AND INCREASED BRAND VALUE WILL FOLLOW.
CSPs NEED TO EXPLOIT OPPORTUNITIES TO DELIVER SERVICES ACROSS THE IOT VALUE CHAIN.
Copyright © 2017 Accenture All rights reserved. 4
THE IoT COST OF SERVICE CHALLENGE
The proliferation of Low Power Wide Area Networking (LPWA) for IoT connections will cannibalize the existing cellular connections business
(2G, 3G and 4G with higher ARPU).
CSPs are optimistic on LPWA, but in general they have not articulated the economics and profitability of this scenario.
To compensate for low ARPU per connection, CSPs will need to drive for significant volumes of connections to equal former revenues and
returns. Meanwhile, there will be other challenges:
Increased competition
from other technologies
and competitors who
now have much lower
barriers to entry
THESE ARE CRITICAL QUESTIONS WHEN, FOR EXAMPLE:
THE COST OF HANDLING ONE CUSTOMER SERVICE ISSUE THROUGH A CALL CENTER COULD BE MORE THAN THE
PROFIT MARGIN ON THE ACCOUNT FOR THE YEAR.
Re-shaping and scaling
CSP operations (supply
chain, provisioning,
servicing, billing) to
serve IoT customers
effectively
Creating optimum
customer experience
to safeguard growth
and retention
Copyright © 2017 Accenture All rights reserved. 5
SHAPING AND SCALING SOLUTIONS BEYOND
CONNECTIVITY
The IoT market is attractive, but
connectivity services only
constitute a small portion of the
rewards. To really take
advantage of the IoT, CSPs must
figure out how to offer more.
They must choose the right focus
areas, capitalizing on their core
strengths to ensure a
competitive, differentiated
product to a crowded market.
Then embrace rapid prototyping
to move offers from concept to
market at speed.
KEY QUESTIONS:
1. Which industries and verticals to target to
maximize ROI?
2. How best to leverage the growing ecosystem to
support this?
3. How to make the cultural and operational switch
from product to solution, effectively enabling
sales and service delivery?
4. How to build a new base of stakeholder
relationships, managed by sales teams that have
moved beyond their old comfort zone?
Copyright © 2017 Accenture All rights reserved. 6
SUCCESSFUL CSPs ARE FUNDAMENTALLY
RETHINKING THEIR STRATEGY
The largest opportunities lie in providing the suite of consumer and enterprise applications and services that enable IoT to become a
reality.
According to a new report from the World Economic Forum and Accenture,
the figures look promising:
The market opportunity from enterprise services
could be more significant:
Potential of an additional
$100 billion
in operating profits across the
industry by 2025.
Of this, network operators
and device manufacturers
could together capture up to
15% of the
market
for consumer IoT services
This would mean an
operating-profit uplift of
$23 billion
Up to
$75 billion
in operating profits across
consulting, implementation
and operational services.
Copyright © 2017 Accenture All rights reserved. 7
DISRUPT, OR BE DISRUPTED
Open platforms are the key to success in the digital economy. They enable
businesses to move away from the traditional linear relationship models with
suppliers and customers, to one that is more dynamic and fluid, one that easily
connects an entire value chain through well-designed APIs (application program
interfaces), and thus empowers new operating and revenue models, sometimes
across industries. When platform providers build ecosystems around their core
business, the ecosystem members use the platform to create innovative services
for the platform provider’s customers, and bring their own customers too.
While tech companies that are born digital have long understood the power of
platforms, there is very little evidence that CSPs are taking radical steps to
embrace this transformational power to capture new growth opportunities.
They now face a stark choice: disrupt or be disrupted — and many are doing both
at the same time. The technology exists today to launch and operate platforms, as
well as the platform-based business models and the strategies they enable.
Industry players need to relinquish control over supplier and customer relationships,
thinking and acting in a whole new way.
TECHNOLOGY CHANGES ARE ONLY THE BEGINNING:
A PLATFORM BUSINESS MODEL REQUIRES A COMPLETE CHANGE IN CULTURE AND MINDSET, PROCESSES,
GOVERNANCE AND LEADERSHIP STYLE.
Copyright © 2017 Accenture All rights reserved.
Move at speed to a platform based
approach with focus on technology,
operational excellence and innovation, to
reduce costs and to maximize the profitability
of each connection. (e.g. automation,
robotics in provisioning, billing, customer
service, etc.).
8
STARTING THE TRANSFORMATION: SIX STEPS
FOR CSPs
Build robust ecosystems and partner
communities to develop connectivity sales
channels. Crucially, embed connectivity
within partners’ solutions through new
business models (specifically platform
ecosystems), differentiated propositions and
connectivity management platforms.
Consider customer support. It’s just not
realistic that CSPs will be able to cost-
effectively offer traditional levels of customer
service, onsite support, etc. on a $1 per-year
connection. Look at self-serve options and
automation. Consider overall support models
for the IoT business.
Build end-to-end solutions into products. Do
this through ecosystems and partners, white
labelling and mergers and acquisitions.
Consider new business models associated
with white labelling partner products and
services. Don’t just sell connectivity, sell the
outcomes it delivers to its users. Value-based
selling isn’t just for big B2B deals these days.
Consumers think that way too; make them
offers to meet those expectations.
Enable more strategic sales forces to sell
business solutions.
1 2 3
4 5 6
Copyright © 2017 Accenture All rights reserved.
CONCLUSION
The IoT market is moving at high speed. Winners
and losers will be apparent in the next two years.
Traditional, long-tail product development is
obsolete here; CSPs will need rapid
transformation, prototyping and delivery.
Successful CSPs will identify and exploit
opportunities to move across the whole IoT value
chain, employing a platform business model to
offer more ‘solutions’ that deliver a tangible
outcome to customers.
That's the path to getting a worthwhile slice of the
enormous potential revenues on offer.
8
Copyright © 2017 Accenture All rights reserved.
AUTHORS
PAUL LALANCETTE
Global IoT Specialized Sales Lead
Accenture Digital
JAMES PAUL
Digital Business Integration Consultant
Accenture Digital
PHILIP VANN
Global Managing Director, Connected Devices & Embedded Software
Accenture Digital
FRANCESCO VENTURINI
Global Managing Director
Accenture Communications & Media Industry Group
9
Copyright © 2017 Accenture All rights reserved.
ABOUT ACCENTURE
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more than 40
industries and all business functions – underpinned by the world’s
largest delivery network – Accenture works at the intersection of
business and technology to help clients improve their performance
and create sustainable value for their stakeholders. With more
than 401,000 people serving clients in more than 120 countries,
Accenture drives innovation to improve the way the world works
and lives. Visit us at www.accenture.com/communications
CONTACT US
commsindustry@accenture.com
@AccentureComms

Contenu connexe

En vedette

Getting to Equal 2017
Getting to Equal 2017Getting to Equal 2017
Getting to Equal 2017accenture
 
Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely
Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely
Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely accenture
 
Video Transforming
Video TransformingVideo Transforming
Video Transformingaccenture
 
The ‘Data Driven Video Business’
The ‘Data Driven Video Business’The ‘Data Driven Video Business’
The ‘Data Driven Video Business’accenture
 
Digital Security
Digital SecurityDigital Security
Digital Securityaccenture
 
Harnessing Revolution: Creating The Future Workforce
Harnessing Revolution: Creating The Future WorkforceHarnessing Revolution: Creating The Future Workforce
Harnessing Revolution: Creating The Future Workforceaccenture
 
The Value Game-Changer: Digital Performance in The Post and Parcel Industry
The Value Game-Changer: Digital Performance in The Post and Parcel IndustryThe Value Game-Changer: Digital Performance in The Post and Parcel Industry
The Value Game-Changer: Digital Performance in The Post and Parcel Industryaccenture
 
Smarter Investments, Outstanding Results: Resources Industries Digital Transf...
Smarter Investments, Outstanding Results: Resources Industries Digital Transf...Smarter Investments, Outstanding Results: Resources Industries Digital Transf...
Smarter Investments, Outstanding Results: Resources Industries Digital Transf...accenture
 
Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...
Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...
Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...HubSpot
 
HubSpot Diversity Data 2016
HubSpot Diversity Data 2016HubSpot Diversity Data 2016
HubSpot Diversity Data 2016HubSpot
 
Add the Women Back: Wikipedia Edit-a-Thon
Add the Women Back: Wikipedia Edit-a-ThonAdd the Women Back: Wikipedia Edit-a-Thon
Add the Women Back: Wikipedia Edit-a-ThonHubSpot
 
Regulatory Compliance: Automated Digital Assistant
Regulatory Compliance: Automated Digital AssistantRegulatory Compliance: Automated Digital Assistant
Regulatory Compliance: Automated Digital Assistantaccenture
 
10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot
 10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot 10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot
10 Things You Didn’t Know About Mobile Email from Litmus & HubSpotHubSpot
 
AI is the New UI - Tech Vision 2017 Trend 1
AI is the New UI - Tech Vision 2017 Trend 1AI is the New UI - Tech Vision 2017 Trend 1
AI is the New UI - Tech Vision 2017 Trend 1Accenture Technology
 

En vedette (16)

Getting to Equal 2017
Getting to Equal 2017Getting to Equal 2017
Getting to Equal 2017
 
Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely
Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely
Seeing beyond the Loyalty Illusion: It’s Time You Invest More Wisely
 
Video Transforming
Video TransformingVideo Transforming
Video Transforming
 
The ‘Data Driven Video Business’
The ‘Data Driven Video Business’The ‘Data Driven Video Business’
The ‘Data Driven Video Business’
 
Digital Security
Digital SecurityDigital Security
Digital Security
 
Harnessing Revolution: Creating The Future Workforce
Harnessing Revolution: Creating The Future WorkforceHarnessing Revolution: Creating The Future Workforce
Harnessing Revolution: Creating The Future Workforce
 
Technology Vision 2017 - Overview
Technology Vision 2017 - OverviewTechnology Vision 2017 - Overview
Technology Vision 2017 - Overview
 
The Value Game-Changer: Digital Performance in The Post and Parcel Industry
The Value Game-Changer: Digital Performance in The Post and Parcel IndustryThe Value Game-Changer: Digital Performance in The Post and Parcel Industry
The Value Game-Changer: Digital Performance in The Post and Parcel Industry
 
AI and the Future of Growth
AI and the Future of GrowthAI and the Future of Growth
AI and the Future of Growth
 
Smarter Investments, Outstanding Results: Resources Industries Digital Transf...
Smarter Investments, Outstanding Results: Resources Industries Digital Transf...Smarter Investments, Outstanding Results: Resources Industries Digital Transf...
Smarter Investments, Outstanding Results: Resources Industries Digital Transf...
 
Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...
Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...
Modern Prospecting Techniques for Connecting with Prospects (from Sales Hacke...
 
HubSpot Diversity Data 2016
HubSpot Diversity Data 2016HubSpot Diversity Data 2016
HubSpot Diversity Data 2016
 
Add the Women Back: Wikipedia Edit-a-Thon
Add the Women Back: Wikipedia Edit-a-ThonAdd the Women Back: Wikipedia Edit-a-Thon
Add the Women Back: Wikipedia Edit-a-Thon
 
Regulatory Compliance: Automated Digital Assistant
Regulatory Compliance: Automated Digital AssistantRegulatory Compliance: Automated Digital Assistant
Regulatory Compliance: Automated Digital Assistant
 
10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot
 10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot 10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot
10 Things You Didn’t Know About Mobile Email from Litmus & HubSpot
 
AI is the New UI - Tech Vision 2017 Trend 1
AI is the New UI - Tech Vision 2017 Trend 1AI is the New UI - Tech Vision 2017 Trend 1
AI is the New UI - Tech Vision 2017 Trend 1
 

Plus de accenture

The Industrialist: Trends & Innovations - January 2024
The Industrialist: Trends & Innovations - January 2024The Industrialist: Trends & Innovations - January 2024
The Industrialist: Trends & Innovations - January 2024accenture
 
The Industrialist: Trends & Innovations - September 2023
The Industrialist: Trends & Innovations - September 2023The Industrialist: Trends & Innovations - September 2023
The Industrialist: Trends & Innovations - September 2023accenture
 
Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education accenture
 
The Industrialist: Trends & Innovations - July 2023
The Industrialist: Trends & Innovations - July 2023The Industrialist: Trends & Innovations - July 2023
The Industrialist: Trends & Innovations - July 2023accenture
 
Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education accenture
 
Engineering Services: con gli ingegneri per creare valore sostenibile
Engineering Services: con gli ingegneri per creare valore sostenibileEngineering Services: con gli ingegneri per creare valore sostenibile
Engineering Services: con gli ingegneri per creare valore sostenibileaccenture
 
Digital Euro: Implications for the Financial System
Digital Euro: Implications for the Financial SystemDigital Euro: Implications for the Financial System
Digital Euro: Implications for the Financial Systemaccenture
 
More deals, less money: the Black founder funding journey
More deals, less money: the Black founder funding journeyMore deals, less money: the Black founder funding journey
More deals, less money: the Black founder funding journeyaccenture
 
The Industrialist: Trends & Innovations - June 2023
The Industrialist: Trends & Innovations - June 2023The Industrialist: Trends & Innovations - June 2023
The Industrialist: Trends & Innovations - June 2023accenture
 
Reinventing Enterprise Operations
Reinventing Enterprise OperationsReinventing Enterprise Operations
Reinventing Enterprise Operationsaccenture
 
Semiconductor Gender Parity Study
Semiconductor Gender Parity StudySemiconductor Gender Parity Study
Semiconductor Gender Parity Studyaccenture
 
The Industrialist: Trends & Innovations - March 2023
The Industrialist: Trends & Innovations - March 2023The Industrialist: Trends & Innovations - March 2023
The Industrialist: Trends & Innovations - March 2023accenture
 
Nonprofit reinvention in a time of unprecedented change
 Nonprofit reinvention in a time of unprecedented change Nonprofit reinvention in a time of unprecedented change
Nonprofit reinvention in a time of unprecedented changeaccenture
 
Free to be 100% me
Free to be 100% meFree to be 100% me
Free to be 100% meaccenture
 
The Industrialist: Trends & Innovations - February 2023
The Industrialist: Trends & Innovations - February 2023The Industrialist: Trends & Innovations - February 2023
The Industrialist: Trends & Innovations - February 2023accenture
 
Mundo gamer e a oportunidade de entrada pela abordagem do movimento
Mundo gamer e a oportunidade de entrada pela abordagem do movimentoMundo gamer e a oportunidade de entrada pela abordagem do movimento
Mundo gamer e a oportunidade de entrada pela abordagem do movimentoaccenture
 
Pathways to Profitability for the Communications Industry
Pathways to Profitability for the Communications IndustryPathways to Profitability for the Communications Industry
Pathways to Profitability for the Communications Industryaccenture
 
The Industrialist: Trends & Innovations - January 2023
The Industrialist: Trends & Innovations - January 2023The Industrialist: Trends & Innovations - January 2023
The Industrialist: Trends & Innovations - January 2023accenture
 
Reimagining the Agenda | Accenture
Reimagining the Agenda | AccentureReimagining the Agenda | Accenture
Reimagining the Agenda | Accentureaccenture
 
Climate Leadership Eleventh Hour | Accenture
Climate Leadership Eleventh Hour | AccentureClimate Leadership Eleventh Hour | Accenture
Climate Leadership Eleventh Hour | Accentureaccenture
 

Plus de accenture (20)

The Industrialist: Trends & Innovations - January 2024
The Industrialist: Trends & Innovations - January 2024The Industrialist: Trends & Innovations - January 2024
The Industrialist: Trends & Innovations - January 2024
 
The Industrialist: Trends & Innovations - September 2023
The Industrialist: Trends & Innovations - September 2023The Industrialist: Trends & Innovations - September 2023
The Industrialist: Trends & Innovations - September 2023
 
Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education
 
The Industrialist: Trends & Innovations - July 2023
The Industrialist: Trends & Innovations - July 2023The Industrialist: Trends & Innovations - July 2023
The Industrialist: Trends & Innovations - July 2023
 
Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education Accenture Technology Vision - How the trends apply to higher education
Accenture Technology Vision - How the trends apply to higher education
 
Engineering Services: con gli ingegneri per creare valore sostenibile
Engineering Services: con gli ingegneri per creare valore sostenibileEngineering Services: con gli ingegneri per creare valore sostenibile
Engineering Services: con gli ingegneri per creare valore sostenibile
 
Digital Euro: Implications for the Financial System
Digital Euro: Implications for the Financial SystemDigital Euro: Implications for the Financial System
Digital Euro: Implications for the Financial System
 
More deals, less money: the Black founder funding journey
More deals, less money: the Black founder funding journeyMore deals, less money: the Black founder funding journey
More deals, less money: the Black founder funding journey
 
The Industrialist: Trends & Innovations - June 2023
The Industrialist: Trends & Innovations - June 2023The Industrialist: Trends & Innovations - June 2023
The Industrialist: Trends & Innovations - June 2023
 
Reinventing Enterprise Operations
Reinventing Enterprise OperationsReinventing Enterprise Operations
Reinventing Enterprise Operations
 
Semiconductor Gender Parity Study
Semiconductor Gender Parity StudySemiconductor Gender Parity Study
Semiconductor Gender Parity Study
 
The Industrialist: Trends & Innovations - March 2023
The Industrialist: Trends & Innovations - March 2023The Industrialist: Trends & Innovations - March 2023
The Industrialist: Trends & Innovations - March 2023
 
Nonprofit reinvention in a time of unprecedented change
 Nonprofit reinvention in a time of unprecedented change Nonprofit reinvention in a time of unprecedented change
Nonprofit reinvention in a time of unprecedented change
 
Free to be 100% me
Free to be 100% meFree to be 100% me
Free to be 100% me
 
The Industrialist: Trends & Innovations - February 2023
The Industrialist: Trends & Innovations - February 2023The Industrialist: Trends & Innovations - February 2023
The Industrialist: Trends & Innovations - February 2023
 
Mundo gamer e a oportunidade de entrada pela abordagem do movimento
Mundo gamer e a oportunidade de entrada pela abordagem do movimentoMundo gamer e a oportunidade de entrada pela abordagem do movimento
Mundo gamer e a oportunidade de entrada pela abordagem do movimento
 
Pathways to Profitability for the Communications Industry
Pathways to Profitability for the Communications IndustryPathways to Profitability for the Communications Industry
Pathways to Profitability for the Communications Industry
 
The Industrialist: Trends & Innovations - January 2023
The Industrialist: Trends & Innovations - January 2023The Industrialist: Trends & Innovations - January 2023
The Industrialist: Trends & Innovations - January 2023
 
Reimagining the Agenda | Accenture
Reimagining the Agenda | AccentureReimagining the Agenda | Accenture
Reimagining the Agenda | Accenture
 
Climate Leadership Eleventh Hour | Accenture
Climate Leadership Eleventh Hour | AccentureClimate Leadership Eleventh Hour | Accenture
Climate Leadership Eleventh Hour | Accenture
 

Dernier

Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfinfogdgmi
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfJamie (Taka) Wang
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024D Cloud Solutions
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UbiTrack UK
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 
Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Brian Pichman
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintMahmoud Rabie
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.YounusS2
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXTarek Kalaji
 
How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?IES VE
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopBachir Benyammi
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 

Dernier (20)

Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdf
 
201610817 - edge part1
201610817 - edge part1201610817 - edge part1
201610817 - edge part1
 
20150722 - AGV
20150722 - AGV20150722 - AGV
20150722 - AGV
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
 
20230104 - machine vision
20230104 - machine vision20230104 - machine vision
20230104 - machine vision
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 
Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership Blueprint
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBX
 
How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 Workshop
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 

IoT Success Strategies for Communications Service Providers

  • 1. IOT SUCCESS STRATEGIES FOR COMMUNICATIONS SERVICE PROVIDERS OPENOPTIMISTIC UNSTOPPABLE
  • 2. Copyright © 2017 Accenture All rights reserved. THE INTERNET OF THINGS IS HERE – AND EXCITEMENT IS RISING Communications Service Providers are forecasting tremendous benefits from the internet of things (IoT), both for their revenue expectations and for society as a whole. The excitement is justified: as providers of key connectivity – between sensors, devices, data centers and people – CSPs will be integral to the proliferation of the “internet of everything”. A NEW REPORT FROM THE WORLD ECONOMIC FORUM AND ACCENTURE SAYS: The IoT is forecast to add $14 trillion of economic value to the global economy by 2030. Increasing bandwidth and data usage could generate an additional $65 billion in operating profits for telecommunications companies. 2
  • 3. Copyright © 2017 Accenture All rights reserved. 3 SO - WHAT’S THE DRAWBACK? For Communications Service Providers, commercial success from the IoT is by no means assured. Much of this potential new connectivity revenue will have low profitability and low Average Revenue per User (ARPU). Unless CSPs make fundamental changes to service offerings and business models, other companies will be reaping the benefits. Offer solutions and services to customers rather than just products and connectivity. Create the right operational focus and partner choices Implement more sophisticated customer support strategies Excel in product and service design, brought to market at speed Reshape business models and sales team profiles. BOTTOM LINE RESULTS AND INCREASED BRAND VALUE WILL FOLLOW. CSPs NEED TO EXPLOIT OPPORTUNITIES TO DELIVER SERVICES ACROSS THE IOT VALUE CHAIN.
  • 4. Copyright © 2017 Accenture All rights reserved. 4 THE IoT COST OF SERVICE CHALLENGE The proliferation of Low Power Wide Area Networking (LPWA) for IoT connections will cannibalize the existing cellular connections business (2G, 3G and 4G with higher ARPU). CSPs are optimistic on LPWA, but in general they have not articulated the economics and profitability of this scenario. To compensate for low ARPU per connection, CSPs will need to drive for significant volumes of connections to equal former revenues and returns. Meanwhile, there will be other challenges: Increased competition from other technologies and competitors who now have much lower barriers to entry THESE ARE CRITICAL QUESTIONS WHEN, FOR EXAMPLE: THE COST OF HANDLING ONE CUSTOMER SERVICE ISSUE THROUGH A CALL CENTER COULD BE MORE THAN THE PROFIT MARGIN ON THE ACCOUNT FOR THE YEAR. Re-shaping and scaling CSP operations (supply chain, provisioning, servicing, billing) to serve IoT customers effectively Creating optimum customer experience to safeguard growth and retention
  • 5. Copyright © 2017 Accenture All rights reserved. 5 SHAPING AND SCALING SOLUTIONS BEYOND CONNECTIVITY The IoT market is attractive, but connectivity services only constitute a small portion of the rewards. To really take advantage of the IoT, CSPs must figure out how to offer more. They must choose the right focus areas, capitalizing on their core strengths to ensure a competitive, differentiated product to a crowded market. Then embrace rapid prototyping to move offers from concept to market at speed. KEY QUESTIONS: 1. Which industries and verticals to target to maximize ROI? 2. How best to leverage the growing ecosystem to support this? 3. How to make the cultural and operational switch from product to solution, effectively enabling sales and service delivery? 4. How to build a new base of stakeholder relationships, managed by sales teams that have moved beyond their old comfort zone?
  • 6. Copyright © 2017 Accenture All rights reserved. 6 SUCCESSFUL CSPs ARE FUNDAMENTALLY RETHINKING THEIR STRATEGY The largest opportunities lie in providing the suite of consumer and enterprise applications and services that enable IoT to become a reality. According to a new report from the World Economic Forum and Accenture, the figures look promising: The market opportunity from enterprise services could be more significant: Potential of an additional $100 billion in operating profits across the industry by 2025. Of this, network operators and device manufacturers could together capture up to 15% of the market for consumer IoT services This would mean an operating-profit uplift of $23 billion Up to $75 billion in operating profits across consulting, implementation and operational services.
  • 7. Copyright © 2017 Accenture All rights reserved. 7 DISRUPT, OR BE DISRUPTED Open platforms are the key to success in the digital economy. They enable businesses to move away from the traditional linear relationship models with suppliers and customers, to one that is more dynamic and fluid, one that easily connects an entire value chain through well-designed APIs (application program interfaces), and thus empowers new operating and revenue models, sometimes across industries. When platform providers build ecosystems around their core business, the ecosystem members use the platform to create innovative services for the platform provider’s customers, and bring their own customers too. While tech companies that are born digital have long understood the power of platforms, there is very little evidence that CSPs are taking radical steps to embrace this transformational power to capture new growth opportunities. They now face a stark choice: disrupt or be disrupted — and many are doing both at the same time. The technology exists today to launch and operate platforms, as well as the platform-based business models and the strategies they enable. Industry players need to relinquish control over supplier and customer relationships, thinking and acting in a whole new way. TECHNOLOGY CHANGES ARE ONLY THE BEGINNING: A PLATFORM BUSINESS MODEL REQUIRES A COMPLETE CHANGE IN CULTURE AND MINDSET, PROCESSES, GOVERNANCE AND LEADERSHIP STYLE.
  • 8. Copyright © 2017 Accenture All rights reserved. Move at speed to a platform based approach with focus on technology, operational excellence and innovation, to reduce costs and to maximize the profitability of each connection. (e.g. automation, robotics in provisioning, billing, customer service, etc.). 8 STARTING THE TRANSFORMATION: SIX STEPS FOR CSPs Build robust ecosystems and partner communities to develop connectivity sales channels. Crucially, embed connectivity within partners’ solutions through new business models (specifically platform ecosystems), differentiated propositions and connectivity management platforms. Consider customer support. It’s just not realistic that CSPs will be able to cost- effectively offer traditional levels of customer service, onsite support, etc. on a $1 per-year connection. Look at self-serve options and automation. Consider overall support models for the IoT business. Build end-to-end solutions into products. Do this through ecosystems and partners, white labelling and mergers and acquisitions. Consider new business models associated with white labelling partner products and services. Don’t just sell connectivity, sell the outcomes it delivers to its users. Value-based selling isn’t just for big B2B deals these days. Consumers think that way too; make them offers to meet those expectations. Enable more strategic sales forces to sell business solutions. 1 2 3 4 5 6
  • 9. Copyright © 2017 Accenture All rights reserved. CONCLUSION The IoT market is moving at high speed. Winners and losers will be apparent in the next two years. Traditional, long-tail product development is obsolete here; CSPs will need rapid transformation, prototyping and delivery. Successful CSPs will identify and exploit opportunities to move across the whole IoT value chain, employing a platform business model to offer more ‘solutions’ that deliver a tangible outcome to customers. That's the path to getting a worthwhile slice of the enormous potential revenues on offer. 8
  • 10. Copyright © 2017 Accenture All rights reserved. AUTHORS PAUL LALANCETTE Global IoT Specialized Sales Lead Accenture Digital JAMES PAUL Digital Business Integration Consultant Accenture Digital PHILIP VANN Global Managing Director, Connected Devices & Embedded Software Accenture Digital FRANCESCO VENTURINI Global Managing Director Accenture Communications & Media Industry Group 9
  • 11. Copyright © 2017 Accenture All rights reserved. ABOUT ACCENTURE Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com/communications CONTACT US commsindustry@accenture.com @AccentureComms